Hyundai’s sales and profit surpassed analysts’ estimates due to increased demand in China and Brazil.
Hyundai’s net income dropped to 2.4 trillion won ($2.15 billion), compared with 2.45 trillion won in 2012, surpassing the analysts’ estimates of 2.37 trillion won. Revenue and operating profit also beat analysts’ forecast. The automaker’s sales were increased by high demand for the Elantra Yuedong sedan.
“Today’s results were not bad, but seasonally the second-quarter has almost always been Hyundai’s strongest quarter,” said Heo Pil Seok, CEO at Midas International Asset Management Ltd. “With a lack of new models and nothing significant anticipated to drive growth, I don’t expect Hyundai’s shares to show strong performance in the remainder of the year.”
Operating profit, not including the goods sold and administrative expenses, dropped 5.2% to 2.41 trillion won, surpassing the 2.35 trillion predicted by analysts. Revenue was up 5.7% to 23.2 trillion won, more than the 22.9 trillion won estimated. Hyundai reduced its sales target by almost 450,000 units to 79.4 million, due to low demand in Europe.
The automaker relies on its new i10 compact to offset losses in Europe and boost sales in the US, were demand for sedans continues to grow. During the last quarter the company’s incentives increased 42% in the US due to the weak yen and the lack of new models. Hyundai sales increased 1.9% in the US, but fell 7.2% in Europe.